VLCC market soars! Owners are busy picking up new ships

- Feb 20, 2020-

Recently, VLCC tanker market is extremely hot.            

According to the shipping brokerage Simpson grace A recent weekly report of oil tanker market by young (ssy for short) shows that due to the efforts of Charterers to lock in capacity for their own plans in September, the VLCC oil tanker market has further increased at a time when capacity is in short supply (partly due to the influence of Taiwan's wind power), and the WS index of Middle East China has reached its highest level since March this year.            

In a summary of the report sent to Sindh maritime network, ssy wrote:            

Crude oil and fuel oil market: VLCC: slightly higher; VLCC: Middle East market, new pallet continued, Middle East to China route, up ws4.0; closed at ws57.5; West Africa to China route, up ws2.5, to ws57.5; TCE of the two routes: 335 and 2900 US dollars per day respectively. On the Caribbean route back to China, the contracted freight rate dropped slightly by US $50000, and TCE was about US $47000 per day.            

According to Clarksons platou securities, VLCC's daily earnings rose to $39200 as of Monday, close to the year to date high, compared with $30500 on Thursday.           

 "VLCC's revenue has increased significantly due to the substantial increase of chartering activities in the Middle East and Gulf region," said one side. "The level of freight in this sector has been higher than the five-year average of $8000 per day."            

According to data provided by tankers international, a total of 28 VLCCs were contracted to the Middle East market from September 1 to 10.